Iberia reacts to strike threat as talks fail

Iberia, the Spanish airline operated by International Consolidated Airlines Group (otherwise known as IAG), has deemed the strikes convoked by labour unions to be excessive and an intolerable threat to the company, its customers, and society.

The airline has reacted to the labour unions' decision on Wednesday after talks in an arbitrage procedure failed to produce any agreements.

According to Iberia, its latest proposal translated into less lay-offs and smaller salary cuts than initially planned. Additionally, it included the use of early retirements instead of layoffs.

"At this challenging moment that Iberia is going through, the announcement of strikes only worsens the company's difficult situation. The company will use legally-available mechanisms to return to profitability and become viable," the company explained.

"Once the strikes are confirmed, Iberia's priority will be to provide customers with solutions and alternatives as it has done in the past."

VUELING TAKEOVERIn November, IAG launched an offer of €7.0 per share for low-cost airline Vueling through its wholly-owned subsidiary Veloz Holdco.

In a filing with Spanish market regulator CNMV on Wednesday, IAG announced that Veloz Holdco "has resolved not to seek that the consideration offered in its tender offer for the acquisition of Vueling Airlines, S.A. ('Vueling') of €7 per share qualifies as an equitable price."

IAG said that it ruled out raising the bid and that it could waive its condition of having a minimum acceptance of 90% of non-IAG shareholders. Nonetheless, it has no plans to delist the remaining shares.

LS